Jul 18, 2013

We're Movin' In!

Pete Peterson is the conservative billionaire who is a major financier in
the effort to dismantle, cut and privatize Social Security, Medicare
and Medicaid. Recently he and his foundation held a contest asking folks
to submit videos on why it is important to “fix” the national debt of
which, he and his foundation falsely claim, Social Security is a major
contributor.

Sometimes the best-laid plans for a propaganda campaign can go awry.
The winner of the $500 grand prize determined by popular vote on the
website came from the completely opposite side of Peterson’s cut Social
Security argument.

The portion of FICA taxes collected since SS's inception going to pay SS benefits have outnumbered the expenditures for SS beneficiaries. Ergo, the SS system is not at fault.

This argument on its face seems rational. It's only when one resigns himself to the notion that any program's own excesses are subject to Congress' grubby hands and, as such, cannot actually be counted for or toward that program that SS begins to cost money.

Of course, based on current projections, SS will start dipping into the red with the large numbers of boomer recipients and relatively fewer workers paying FICA taxes. But as of now, I think it's correct to say the program is not contributing to the deficit.